While few personnel changes are planned for the Washington Capitals, American Online Inc. executive Ted Leonsis says his impending purchase will mark the onset of an entirely new era for the club, one that will involve considerably more spending on marketing and make the fan experience the organization's first priority.
"This is not a players' league," Leonsis said. "This is a fans' league. We need to be personal with the fans."
Although the Capitals reported an average attendance of 17,281 last season, Leonsis said many tickets were given away and that the team actually sold fewer tickets than any other team in the NHL this season. Its season-ticket base rests at about 5,000, not even enough to fill the lower bowl at the new MCI Center.
The Capitals have struggled despite playing in a vibrant, growing market and experiencing years of success on the ice — reaching the playoffs in 15 of the last 17 seasons and going all the way to the Stanley Cup Finals a year ago. But the move to the MCI Center from the outdated USAir Arena last season did not have a demonstrable impact on attendance, signaling how small the Capitals fan base really is.
Leonsis said the team has been undermarketed and vowed that will change as soon as he is paying the bills. He laid out a three-point plan that calls for "cosmetic," "systemic" and "cultural" changes. By that he means improving the game presentation at the MCI Center, lowering ticket prices and spending less money on free agents and more on player development, and adopting a "fans-first" attitude within every sector of team operations.
His rhetoric is similar to the kind of statements heard from new team owners in Tampa, Pittsburgh and Long Island, who teased fans with promises to overhaul teams only to turn around and try to sell or move them within a short time after the purchases.
But current Capitals owner Abe Pollin cited Leonsis' long-term commitment to the club as the reason for selecting him as the buyer. The arena and lease problems that popped up in those other markets will likely not become an issue in Washington, as Leonsis has options eventually to become 100 percent owner of the MCI Center and the building's other tenant, the Washington Wizards.
Leonsis, whose investment group agreed to pay $85 million for the Capitals and another $115 million for a minority stake in the Wizards and the arena, said there will be no need to renegotiate the arena lease.
The 43-year-old Internet pioneer will keep his day job as head of America Online's Interactive Properties Group and keep his nose out of day-to-day team operations. Rather than bringing in a business or sports marketing executive to run the team, more responsibility will be bestowed upon current Capitals President Dick Patrick, who is also a part-owner of the team.
Because the transaction is reportedly in cash and does not involve incurring bank debt, the sale is expected to get easy approval from the NHL's board of governors.
